INVESTMENT CASE
Tongaat Hulett creates value for all stakeholders through an all-inclusive approach to growth and development. From an investor perspective, the business’s strategic positioning and objectives focus on the following key points: |
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Growth from existing sugar and starch asset and business base | |
| • | Firstly, increasing sugar production by some 50 percent from existing unutilised milling capacity - low cost and high incremental profit per additional ton of sugar produced. Platform for further brownfield/greenfield regional expansion | |
| • | Increasing cane supplies - higher yields and greater areas under cane, with a particular focus on developing private farmers | |
| • | Well-established market positions, brands and market opportunities - local, African, EU and other international markets | |
| • | Renewable energy opportunities to increase revenue from sugarcane - electricity generation from fibre and ethanol production to replace export sugar | |
| • | Starch - local and African market growth, supplied from existing available wet-milling capacity | |
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Socio-economic position going from strength to strength | |
| • | Strategic positioning in the region is underpinned by the inextricable link between agriculture, sugar production, rural jobs and community development, government and local authorities, unlocking infrastructure investment and the conversion of cane land to development | |
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Land conversion | |
| • | Unique land portfolio and well-established development platform - in the fastest-growing area of KwaZulu-Natal | |
| • | Accelerating pace of land conversion, increasing momentum and substantial step-up in value being unlocked, with cash generation | |
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People - multiple advanced core competencies, good governance, strong executive and Board leadership | |
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Sound sustainability strategy and track record - from environmental stewardship through to the specifics of safety at the operations | |
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Strong balance sheet with high-quality assets | |
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Increasing earnings and cash flows - leading to higher dividends | |
